Buying your first home is one of life’s most exciting and stressful milestones. Whether you’ve been dreaming about owning a place of your own or are just starting to explore your options, the homebuying process can be complex.

Step 1: It’s never too early to start preparing

Building your savings, improving your credit and figuring out your budgets are essential first steps.

Buying a home comes with an array of upfront and ongoing expenses you need to budget for. Think about how much you can save each month and set up automatic transfers to your savings account.

Use a housing affordability calculator to determine your budget based on your income, debts and location. Most experts recommend that your total housing costs, including insurance, should be under 31% to 40% of your gross monthly income.

Your credit score plays a significant role in the mortgage process, from loan approval to the interest rate you’ll be offered.

Step 2: Learn the true costs of homeownership

While not legally required, a thorough home inspection is one of your most critical upfront investments.

Your property taxes are based on your home’s assessed value and local millage rates. Florida offers a Homestead Exemption of up to $50,000, which can significantly reduce your tax burden for a primary residence.

• To learn more, visit the Florida Department of Revenue, which has a guide to Florida’s Property Tax System. Be sure to check with your local property appraiser about exemptions, assessed values and filing deadlines.

Your mortgage lender will most likely require you to have homeowner’s insurance. If your home is in a designated flood zone, flood insurance will also be required.

Be sure to shop around and ask potential insurers about discounts when you bundle your home and auto insurance. The Florida Department of Financial Services and the Florida Office of Insurance Regulation Homeowners Rate Comparison Tool are both helpful resources.

If your home is in a planned community, you may be responsible for monthly or annual HOA fees, too.

Step 3: Explore your mortgage options

A mortgage loan – or lender – is not one-size-fits-all. Understanding the loan types available can help you choose the mortgage that best suits your financial situation and long-term goals. Common mortgage loan types include conventional loans, FHA loans, USDA loans and VA loans.

For your mortgage, you also need to consider the term of your loan, such as 30-years fixed, 15-years fixed and adjustable-rate mortgage (ARM).

Step 4: Look into homebuyer assistance programs

As a first-time homebuyer, you may qualify for valuable assistance programs that help make homeownership more attainable. The U.S. Department of Housing and Urban Development has a list of homeownership programs by location, with some of these programs including Florida Housing Finance Corporation Homebuyer Program, Hendry and Glades County S.H.I.P. Programs and Habitat for Humanity Lee and Hendry Counties Affordable Homeownership Program.

Step 5: Take a class

Many local governments and organizations provide homebuying courses or counseling. The Habitat for Humanity Lee & Hendry Counties has housing counseling sessions that include financial management and other guidance tips. HELP (Housing, Education, Lending Programs) offers a virtual homebuyer education workshop for $99.

Step 6: Shop around for lenders and get preapproved

Different mortgage lenders offer different interest rates, fees, loan terms and more, so it pays to compare. Helpful tip: Apply with multiple lenders within a 30-day window to avoid potentially impacting your credit score.

Once you have settled on a preferred lender, request a preapproval letter. The preapproval letter gives you a clear picture of what you can borrow and shows sellers that you’re a serious buyer and financially ready.

Step 7: House hunt with purpose

This starts with working with an experienced real estate agent who helps you navigate the market, negotiate with sellers and manage paperwork.

What type of home are you looking for? Each house type has pros and cons, so consider your lifestyle, long-term goals, budget and how much maintenance you’re willing to take on.

Step 8: Seal the deal with confidence

First, stick to your budget. Remember, your lender’s preapproval amount is the maximum, so staying below your top budget leaves room for flexibility.

Next, when touring a home, assess real quality and potential issues like:

• Listening for traffic or neighborhood noise
• Pay attention to odors, structural wear, or outdated systems
• Ask about the age of the roof, plumbing, and electrical systems

By planning ahead, exploring your options and working with the right experts, you’ll be in a strong position to find the home that’s right for you, your family and your lifestyle.

For more information or tips, go to healthierhendryglades.org/step-by-step-guide-for-first-time-homebuyers/.

About Healthy Humans Hendry-Glades

Healthy Humans Hendry-Glades provides resources and tips to help residents care for their physical, financial, mental, emotional, spiritual and social health. Supported by the Healthier Hendry Glades Task Force, a collaboration of partners that promote healthier lifestyles in Hendry and Glades counties, it provides tools for everyone to become a Healthy Human. For information, visit HealthierHendryGlades.org.